As a lifelong gamer who has witnessed the evolution of gaming industry since its humble beginnings, I find myself deeply concerned with the recent turn of events at Microsoft and across the gaming landscape. The recurring layoffs and studio closures have become an all-too-familiar narrative in the industry, leaving many talented individuals without jobs and beloved franchises in jeopardy.
Following the acquisition of Activision Blizzard, Microsoft has made further reductions within its Xbox gaming division, affecting approximately 650 roles. This recent wave of job losses was announced by Phil Spencer, CEO of Microsoft Gaming, on September 12th. It’s important to note that no additional studios have been closed, and no games have been cancelled due to this decision. Earlier in the year, Microsoft had already trimmed around 1,900 positions within its gaming sector. Since the $75.4 billion deal to purchase Activision Blizzard was finalized in October 2023, these latest cuts bring the total number of job reductions at Microsoft to roughly 2,550.
In a memo to staff obtained by IGN, Spencer said the cuts came as part of Microsoft’s effort to align the company’s “post-acquisition team structure and managing our business.”
Approximately 650 positions within Microsoft Gaming have primarily affected the administrative and supportive roles within their operations, according to the company’s statement. Employees in the United States who were impacted will receive severance pay, extended healthcare coverage, and outplacement services. Similar support packages are also offered for employees outside of the US, although they may vary based on location.
Spencer stated that by making these modifications, our corporate and auxiliary departments will be in sync, enabling long-term expansion, and will be more equipped to assist our studio teams and business divisions with expanding programs and resources. Additionally, he mentioned that while managing the business, some teams may experience changes due to adjusting to new priorities and handling the development, maintenance, and success of games. However, it’s important to note that no games, devices, or experiences are being discontinued, and no studios are being shut down at this time as part of these modifications.
Back in March, Spencer explained that the preliminary layoffs, which were announced in January, were essential for making Xbox a profitable venture post the acquisition of Activision Blizzard, a major deal.
Beyond reducing its workforce, Microsoft shuttered several studios permanently this year, such as Arkane Austin, Tango Gameworks, Roundhouse Games, and Alpha Dog Studios. However, Tango Gameworks managed to be acquired by PUBG studio Krafton, while the remaining three have closed for good.
2024, much like 2023 preceding it, has been a challenging year for job reductions within video game developers and staff at companies such as Microsoft and numerous others. Approximations indicate that over 11,000 layoffs have occurred in the gaming sector this year alone. A former Sony executive recently voiced his perspective on these dismissals, attributing them not solely to corporate avarice but rather as part of broader economic conditions. Companies like Ubisoft, Bungie, and many others have also executed significant staff reductions this year.
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2024-09-12 15:39